Insurance & LiensQuestion 1534 of 1605
On a private work of improvement, when a valid payment bond has been recorded, an unpaid subcontractor may:
a.Only pursue the bond, never lien
b.Recover twice the amount owed
c.Have rights against both the payment bond surety and, if applicable, a mechanics lien
d.Only lien the property, never sue the bond
Explanation
When a payment bond exists on a private project (Civil Code §8600 et seq.), an unpaid claimant generally retains lien rights and also has a claim against the payment bond surety. The claimant may pursue available remedies but recovers only what is actually owed.
Law Reference: Civ. Code §8600Practice all 1605 questions free — no signup required.
Related questions on this topic
- Which of the following is TRUE about the difference between the CSLB contractor's license bond and a project performance bond?
- A preliminary notice in California must be served by which method to be effective?
- A subcontractor's certificate of insurance names the general contractor as 'certificate holder.' Being a certificate holder means the general contractor:
- A notice of cessation was recorded after a 30-day work stoppage. This recording affects lien deadlines by:
- 'Completed operations' coverage under a CGL policy is important to contractors because it covers:
- A sole-owner contractor with no employees wants to avoid carrying workers' compensation insurance. Generally, the contractor may:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)